A procuring entity may enter into a framework agreement through open tender if-

  •  the procurement value is within the thresholds prescribed under Regulations to this Act;
  • the required quantity goods, works or non-consultancy services cannot be determined at the time of entering into the agreement; and
  •  a minimum of seven alternative vendors are included for each category The maximum term for the framework agreement shall be three years and, for agreements exceeding one year, a value for money assessment undertaken annually to determine whether the terms designated in the framework agreement remain competitive.

When implementing a framework agreement, a procuring entity may

  • procure through call-offs order when necessary; or
  • invite mini-competition among persons that have entered into the framework agreement in the respective category.

“Call-offs order” means an order made using a framework agreement with one or more contractors, suppliers or consultants for a defined quantity of works, goods, consultancy covering terms and conditions including price that users require to meet the immediate
requirements. Evaluation of bids under category specified by subsection (3Xb) shall be undertaken by an evaluation committee as provided for under the Act.

A procurement management unit shall prepare and submit to the accounting officer with a copy to the internal auditor quarterly reports detailing an analysis of items procured through framework agreements and these reports shall include an analysis of pattern of usage, procurement costs in relation to the prevailing market rates and any recommendations. For greater certainty procurements undertaken through framework agreements may be subject to Preferences and Reservations as provided for in the Act .

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